Diversinet Reports Third Quarter 2012 Financial Results

TORONTO, Oct. 26, 2012 /PRNewswire/ - Diversinet Corp. (TSX Venture: DIV, OTCQB: DVNTF), a leader in secure mobile health that "Powers Care Coordination through Mobility," reported its third quarter 2012 results for the period ended September 30, 2012. All dollar amounts are in U.S. dollars.

Financial Highlights
Revenues for the third quarter of 2012 increased 35% to $451,000 from $333,000 in the same year-ago period. Revenues for the nine months ended September 30, 2012 increased 27% to $1.2 million from $0.9 million in the same period in 2011.

Revenues in the third quarter of 2012 included $181,000 from the Company's license and reseller agreement with Mihealth Global Systems and $138,000 from the University of Nebraska.

Net loss in the third quarter totalled $0.7 million or $(0.02) per share, an improvement from a net loss of $1.1 million or $(0.03) per share in the same period last year. Net loss for the nine months ended September 30, 2012 was $3.2 million or $(0.07) per share, an improvement from a net loss of $3.9 million or $(0.09) per share in the same period in 2011.

Cash used in operations for the third quarter was $0.8 million compared with $1.1 million in the same period last year. Cash and cash equivalents were $4.3 million at September 30, 2012 as compared to $7.4 million at December 31, 2011.

Operational Highlights

  • During the third quarter, Diversinet received a one-year renewal from the U.S. Army's Telemedicine and Advanced Technology Research Center (part of the U.S. Army Medical Research and Materiel Command) mCare telehealth-outreach program for members of the military recovering from mild traumatic brain injuries and other wounds.

  • In July 2012, Diversinet appointed Bret Jorgensen as chairman of the board. Jorgensen succeeded Albert Wahbe, who retired as chairman but remains a member of the board. Jorgensen brings more than 20 years of experience as a healthcare entrepreneur and corporate transformation executive to Diversinet.

  • Diversinet's CEO, Dr. Hon Pak, was interviewed by mHealth Zone at American Telemedicine Association 2012 Fall Forum. He discussed his views about the emerging mHealth market and recent developments of Diversinet's MobiSecure® technology, an enterprise-level mhealth platform that enables care coordination and patient engagement through building and configuring applications. The broadcast is available for replay here.

"Our secure and flexible mobile platform uses a unique system based approach to design, build and customize enterprise-level applications that drive patient engagement and care coordination," said Dr. Pak. "We currently support 12,000+ users across our existing customer base and look forward to adding new customer relationships this quarter."

Financial Summary
Q3 2012 Q3 2011
Revenues $451,018 $332,976
Cost of revenues 92,006 53,125
Gross margin 359,012 279,851
Research and development 191,454 539,156
Sales and marketing 326,832 385,141
General and administrative 481,563 409,957
Depreciation 12,999 15,914
1,012,848 1,350,168
Loss before the undernoted (653,836) (1,070,317)
Foreign exchange loss (3,847) (9,409)
Interest income 2,750 5,405
Loss for the period $(654,933) $(1,074,321)
Basic and diluted earnings (loss) per share $(0.02) $(0.03)
Cash and cash equivalents $4,318,583 $8,658,899
Total assets $4,816,739 $9,256,575
Total current liabilities $615,610 $573,925
Total shareholders' equity $4,201,129 $8,682,650
Weighted average basic and fully diluted common shares
43,293,043 42,671,847

For complete financial statements, including the notes and management's discussion and analysis, please visit our website at www.diversinet.com/FinancialReports.html

About Diversinet
Diversinet Corp. (TSX Venture: DIV, OTCQB: DVNTF) is answering the challenges of today's healthcare landscape with a secure enterprise mobile healthcare platform and integrated solutions. This technology can be leveraged and customized quickly to meet the ever-changing needs of healthcare organizations and patients - driving patient-provider and payer communications and improving outcomes while lowering costs. Learn more about Diversinet at www.diversinet.com.

The Private Securities Litigation Reform Act of 1995 and Canadian securities laws provide a "safe harbour" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by the company) contains statements that are forward-looking, such as statements relating to the success of current product offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the company. For a description of additional risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission available at www.sec.gov and Canadian securities regulatory authorities available at www.sedar.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. MobiSecure is a registered trademark of Diversinet Corp.

SOURCE Diversinet Corp.